THE GOVERNMENT has bailed out Anglo Irish Bank with a further €6.4 billion of taxpayer funds and Irish Nationwide Building Society with €2.7 billion, following the European Commission’s approval of further capital injections.
The latest bailouts bring the total capital committed by the Government to Anglo to €29.3 billion and Irish Nationwide to €5.4 billion to meet losses incurred on land, development and commercial property loans.
Anglo has received €25.3 billion by way of promissory notes – Government IOUs – including this week’s capital top-up and State cash of €4 billion last year.
Irish Nationwide has received all but €100 million of the €5.4 billion injected in State aid by way of promissory notes, which allow the Government to spread the cost of the banks over a period of years.
irishtimes.com/newspaper/finance/2010/1223/1224286170711.html
Incidentially, can I make a prediction …
… and say Anglo will need more than €5 billion to cover a *less than *worst case scenario.
roc
December 23, 2010, 9:52am
#2
What a joke. No surprise though to anyone who took a clear view of things back when things first started going askew. Example.
Recapitalisation is a stupid idea. You could sink €100bn into these lemons and they’d still need more.
The existing Irish banks are Dead. Just give them a decent burial already. The last thing we need is 20 years of propping up zombie undead banks. Let them fail, let the State buy up a branch network and the clearing technology for a pittance, create a State-run bank with a remit to focus on providing credit to the indigenous SME/start-up sector. That can get the wheels of industry turning again, and in 3-5 years we’ll be through this mess and out the other side. Let the liquidators waste their lives trying to extract some value from the corpses, at no expense to the taxpayer.
It’ll be far quicker and far cheaper than arseing around for a generation trying to staunch the wounds on the Irish banks. It’s like waving a cotton bud at a man who has just had his arm cut off.
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What’s another 9 billion, to someone who’s lost, everything that he owned…
I hope more of this happens except more quickly than this debt by a thousand cuts. People seem to be immune to this drip feed of corruption. If say 30 billion was thrown at the banks’ black hole in 2011 maybe we could have an awakening and walk away from all this farce.
If there is a Default Party they have my vote!
